You’ve been in a car accident, and now the other driver’s insurance company is calling with an offer. Maybe it’s $1,500, $2,000, or $2,500. They’re being friendly. They say they want to help you move on. All you have to do is sign some paperwork.

Should you take it?

In most cases, the answer is no—and here’s why that quick settlement offer could cost you tens of thousands of dollars or more.

Why Insurance Companies Offer Quick Settlements

It’s common for an insurance company to reach out with a settlement offer shortly after an accident—sometimes within days or even hours. These early offers are typically for minimal amounts: $1,500, $2,000, maybe $2,500.

This might seem like the insurance company is being helpful. In reality, they have very specific goals:

1. They Want You to Sign a Release

When you accept a settlement, you’re required to sign a release. This is a legal document that permanently prevents you from ever receiving any more money in your case—no matter what happens next.

If your injuries turn out to be more serious than you thought, you can’t go back and ask for more. If you need surgery six months from now, too bad. Once you sign that release, your case is closed forever.

2. They Want to Prevent You from Hiring a Lawyer

Insurance companies know that people who hire attorneys typically receive significantly higher settlements than those who don’t. By offering money quickly—before you have a chance to consult with a personal injury attorney—they can close your case for a fraction of what it might actually be worth.

3. They Don’t Want You to Know Your Full Rights

The insurance adjuster on the phone is not your advocate. They work for the insurance company, and their job is to pay out as little as possible. They’re not going to tell you:

  • The full value of your case
  • All the types of compensation you may be entitled to
  • The total amount of insurance coverage available
  • Your legal rights under Florida law

By offering money early, before you have legal representation or understand your rights, they eliminate the risk of having to pay you what your case is actually worth.

A Real-World Example of Why This Matters

Consider this scenario we’ve seen play out: A young woman was seriously injured in an accident and was approached by the insurance company while still in the hospital. They offered her $25,000, which probably seemed like a significant amount while she was dealing with pain, medical bills, and uncertainty about the future.

She signed the release.

Only later did she discover that the at-fault driver had $300,000 in coverage. She had signed away her right to pursue the remaining $275,000—money that could have covered her ongoing medical treatment, lost wages, and other damages.

Once that release was signed, there was nothing more anyone could do. The insurance company wasn’t required to tell her about the full policy limits, and they didn’t.

What the Insurance Company Won’t Tell You

Here’s something important to understand: an insurance company is not legally obligated to share the full amount of the at-fault driver’s insurance policy or coverages with you.

That means when they offer you $2,500, the policy limit might actually be $100,000 or $300,000 or more. They’re hoping you’ll accept a tiny fraction of what’s available without ever knowing the difference.

This is one of the most significant advantages of working with an attorney. Under Florida law, an attorney can:

  • Require the insurance company to disclose the policy: Using a Florida statute, an attorney can demand that the insurance company send a certified copy of the policy within 30 days, revealing all available coverages.
  • Obtain an affidavit of no additional coverage: This legal document confirms whether there are any other insurance policies that might apply to your case.
  • Conduct a financial asset search: In cases involving serious injuries, an attorney can investigate whether the at-fault driver has personal assets that could provide additional recovery beyond insurance limits.

These are tools that individuals typically don’t have access to—or don’t know exist—when negotiating on their own.

How to Know If a Settlement Offer Is Fair

Before accepting any settlement offer, you need to understand the full scope of your damages. This includes:

Current Medical Expenses

All medical bills you’ve incurred so far, including ambulance, emergency room, hospital stays, imaging, and any treatments.

Future Medical Expenses

Ongoing treatment you may need, such as physical therapy, surgery, medication, or long-term care. Many injuries don’t fully reveal themselves until weeks or months after an accident.

Lost Wages

Income you’ve already lost due to missed work, plus any future lost earning capacity if your injuries affect your ability to work.

Pain and Suffering

Compensation for the physical pain, emotional distress, and diminished quality of life caused by your injuries.

Property Damage

The cost to repair or replace your vehicle and any personal property damaged in the accident.

For a more complete understanding of what you may be entitled to, see our guide on types of damages you can recover in a personal injury case.

Red Flags That a Settlement Offer Is Too Low

Be especially cautious if:

  • The offer comes very quickly—within days of the accident, before you even know the full extent of your injuries
  • The amount is small—a few thousand dollars rarely covers serious injuries
  • You’re still receiving medical treatment—you shouldn’t settle until you know your final medical costs
  • They’re pressuring you to decide quickly—legitimate offers don’t expire in 48 hours
  • They discourage you from talking to a lawyer—this is a major red flag

What Happens If You’ve Already Signed a Release?

Unfortunately, once you sign a release, your options are extremely limited. In most cases, the release is legally binding and cannot be undone—even if you later discover the settlement was far below the value of your case.

There are rare exceptions, such as cases involving fraud or misrepresentation, but these are difficult to prove. This is why it’s so important to consult with an attorney before signing anything.

Why You Should Call an Attorney First

If you’ve been injured in a car accident and an insurance company has contacted you with a settlement offer, we strongly encourage you to speak with an attorney before accepting.

A consultation costs you nothing, but it could save you thousands—or even hundreds of thousands—of dollars. An attorney can:

  • Review the settlement offer and tell you if it’s fair
  • Investigate the full insurance coverage available
  • Calculate the true value of your case based on your injuries and damages
  • Handle all communications with the insurance company
  • Ensure you don’t sign away your rights for less than you deserve

Remember: the insurance company has adjusters, lawyers, and decades of experience protecting their bottom line. You deserve someone in your corner too.

Don’t Wait Too Long

While you shouldn’t rush to accept a settlement, you also can’t wait forever. Florida’s statute of limitations gives you only two years from the date of your accident to file a personal injury lawsuit. After that deadline passes, you lose your right to pursue compensation entirely.

The sooner you consult with an attorney, the more time there is to properly investigate your case, gather evidence, and negotiate for a fair settlement—or take your case to court if necessary.

We’re Here to Help

At The Lowman Law Firm, we’ve seen too many accident victims accept lowball settlements before understanding what their cases were truly worth. We’re committed to making sure that doesn’t happen to you.

Our team offers free case evaluations, and we work on a contingency fee basis—you pay nothing unless we recover compensation for you. If you’ve received a settlement offer, let us review it before you sign anything.

With offices across the region, we’re never far away:

Contact us today for a free consultation. You’re our neighbor, not a number—and we’re here to fight for you.

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